Buy YFI (Yearn Finance)
Anyone looking to make money with their wits has long looked at cryptocurrencies. Cryptoworld is a chance to increase money by investing wisely. In this article we will tell you about Yearn finance (YFI) cryptocurrency.
Where to buy YFI tokens?
With the Yearn Finance project at the forefront of the DeFi world, it's no surprise that the best places to get YFI tokens are decentralised exchanges and Binance.
What is YFI cryptocurrency?
Cryptocurrencies are undoubtedly the crown jewel of this ecosystem. So if you are planning to buy YFI, take a closer look at the cryptocurrency.
YFI is an ERC-20 token used to manage protocols within the Yearn Finance ecosystem. YFI tokens can be earned by interacting with these protocols. The maximum supply is 30,000 YFI tokens, and there is no ICO or pre-mining.
You can earn YFI tokens by providing liquidity to one of the Yearn Finance platforms (or buy them on an exchange). The last YFI token was released into the ecosystem on 26 July.
The Yearn Finance community is currently in the process of preparing to issue new YFII tokens (that's not a typo - there are two I's in there), which will be a means of further encouraging users to provide liquidity to the Yearn Finance ecosystem. YFII is a "fork" of YFI and has a maximum supply of 60,000 tokens.
The entire supply of YFII tokens will be distributed over ten weeks like the original YFI tokens were distributed.
Decentralised finance (DeFi)
DeFi or decentralised finance is a set of specialised services that use smart contracts and decentralised applications. It is the application of such technologies that makes it possible to create an independent financial ecosystem that is not subject to the influence of external regulators and minimises the human factor in its operation.
DeFi is used in the provision of various financial services, thus eliminating the need to depend on centralised financial companies. Additionally, blockchain eliminates time constraints and the system can be used by any user 24 hours a day, any day of the week, all year round.
Is it worth buying Yearn Finance?
It would help if you decided to buy Yearn Finance after proper research into the token. This personal research will form the basis for your decision and will also help you understand the pros and cons of the coin.
Conducting independent research can be challenging as you may not know the correct information to follow. However, the following should be considered when buying Yearn Finance.
What is the YFI project?
The yearn finance protocol, one of the most decentralised projects in the cryptocurrency space, is focused on simplifying DeFi technology while giving users the highest possible annual percentage yield (APY) on the cryptocurrencies they deposit.
The YFI cryptocurrency launched by the yearn finance project is considered by many people to be the 'Bitcoin' of DeFi. It brought an incredible annual return of 2000% to its first users. If you also think of the nearly $200 million in assets locked up in the protocol, you get a recipe for creating some serious hype. Thousands of people rush to buy Yearn Finance or invest in YFI.
How to earn YFI cryptocurrency?
Before moving on to an overview of the three ways to earn YFI (and YFII), let's take a minute to explore what's happening in the background.
Recall the y-tokens mentioned in the previous paragraph. Those y-tokens can be sent to the Curve Finance y-pool, which is a DeFi protocol that allows for easy exchange of stablecoins with low slippage (reasonable exchange rate).
As Curve Finance pays users to provide liquidity, you earn money in yCRV tokens (yCurve), which are generated to provide liquidity to the Curve Finance protocol. Initially, these tokens remain locked within the Curve Finance system.
Cronje created the yFI token to allow users to "trade" the yCRV tokens that are generated by their investments in the yCRV pool, while also managing the Yearn Finance ecosystem.
YFI (and YFII) can be earned in three ways:
- The first of those was mentioned in the previous paragraph and involved depositing yCRV tokens into the yGov pool within the Yearn Finance system.
- The second involves depositing DAI and YFIs in the combination of 98-2% into the Balancer protocol in exchange for BAL tokens. These BAL tokens are then sent to yGov in exchange for YFIs.
- The third method involves depositing a combination of YFI and yCRV in Balancer in exchange for BPT tokens (Balancer pool), which are then transferred to yGov and generate YFI tokens. Initially, the system was designed so that each of the three pools had 10,000 YFI tokens. However, as mentioned earlier, all the YFI tokens were mined by 26 July, about ten days after the presentation.
All of this may seem confusing, but it will be easier to understand if you look at the protocol's operation through the lens of "proof of stake". The difference is that instead of using some cryptocurrency for stacking in exchange for rewards for generating blocks of that cryptocurrency, you are essentially putting tokens that Curve Finance and Balancer give you into Yearn Finance in exchange for the right to participate in managing the Yearn Finance protocol.
Who created Yearn Finance?
Yearn. Finance was created by a lone computer programmer named André Cronje. After dropping out of college, where he was mastering his law degree, André completed a three-year computer science program in just six months. After that, he received an offer to teach at the institution where he took the course.
Instead, he immersed himself in private business and worked in insurance, fintech, big data and distributed ledger technology (developing centralised blockchains).
When his partner left on a honeymoon, Cronje began researching cryptocurrency technology. Andre claims that if his colleague hadn't gotten married, he would never get involved in cryptocurrency.
Although Cronje believes that most cryptocurrencies are too volatile and speculative to invest in seriously, he is fascinated by decentralised financial protocols and the incredible returns offered for depositing "stablecoins" on such platforms.
Cronje began investing his and other people's money into these protocols, manually transferring funds into the platform/stablecoin combination, which produced the highest APY.
He was busy developing software that would automatically switch between DeFi protocols to optimise returns when he realised it could be scaled up and made publicly available. So he began working closely with Curve Finance and Aave, eventually creating what was later called YEarn.
By this time, Cronje was well known in the cryptocurrency industry for his software code reviews on Medium. He had become so influential that the thoughts he wrote for Crypto Briefing had for some time determined the prosperity or failure of projects in the eyes of many members of the crypto community.
Cronje feels that the DeFi sphere has become too complex and almost impossible for the average person to interact with, so he's focusing on a simple and intuitive user interface, which is the centrepiece of the recently rebranded Yearn Finance (aka yEarn), launched in February of this year.
Cronje is committed to making yearn finance the most secure DeFi protocol available - he recently announced that he was the first to invest in the project and will be the last to withdraw. Such dedication shows that there is a reason why so many people trust this project and want to buy Yearn Finance.
Cronje is passionate about open source technologies while refusing to take responsibility for the protocols he has created, likes to do objective code reviews of other DeFi platforms, and maintains an extremely high level of activity in the community and development of Yearn Finance.
In his own words, you have to "hate yourself more than you hate what you create". Most importantly, after creating the YFI token, he didn't leave a certain amount of tokens for himself, as developers of many cryptocurrency projects often do (although he did earn a certain amount as a regular user). Instead, Cronje pronounces the name of the YFI token as "waifu" and insists it has zero value.
Yearn Finance - project, which provides investing possibilities
Yearn Finance is an ecosystem of protocols based on the Ethereum network designed to simplify user interaction with popular DeFi protocols and maximise the annual percentage yield (APY) from cryptocurrencies deposited into DeFi.
The most popular protocol in this ecosystem is Yearn Finance (same name as the platform), which automatically moves user funds between lending protocols such as Compound, Aave and Dydx, maximising returns. The community develops and manages the entire Yearn Finance ecosystem using the YFI token.
Other protocols in the Yearn Finance ecosystem include:
- Ytrade Finance, which allows users to trade up or down on 'stablecoins' with 1000x leverage.
- Yliquidate. Finance, which uses instant loans from Aave to liquidate funds.
- Yswap.exchange, which acts as a single source through which users can manually deposit funds to and transfer between different DeFi protocols.
- Ginally, there is yborrow. Finance is designed to tokenise debt in other protocols using Aave, allowing the service to be used in other DeFi protocols. Yearn Finance and yswap.exchange are fully operational. The others are still in the test phase.
As you can see, Yearn Finance provides many opportunities to invest in YFI in New Zealand.
The risks of buying YFI
With enough study, you will realise that cryptocurrency trading has its drawbacks. For example, the price of Yearn finance invariably changes as the market turns.
However, there are ways to mitigate the risks.
- Make sure your bets are reasonable - don't go all-in.
- Examine carefully before choosing an exchange or wallet.
- Invest in other Decentralised Finance (DeFi) coins with Yearn finance. This helps expand your holdings and gives you different streams of income from cryptocurrency.
- Use a dollar value averaging strategy to buy Yearn finance. This allows you to buy Yearn finance regularly but in minimum amounts, depending on the direction of the market.
The founder, André Cronje, sought to maintain a high level of transparency despite the inherent risks of decentralised finance. Notably, these intrinsic risks associated with decentralised finance can cause users to lose money due to rapid market conditions. But this is a problem inherent in the DeFi industry as a whole.
Nevertheless, in terms of transparency, the governance structure of the protocol is community-based. This means that token holders have a stake in the decision-making process. The more tokens you have, the greater your ability to make decisions. This is impressive for YFIs because proposals will only be submitted where 33% of the token holders agree, making the DeFi system quite democratic.
The fall is a temporary drop in cryptocurrency prices. It could result from negative news, government intervention or unfavourable market conditions. When you buy a dip, an investment strategy involves buying a digital asset when the price has fallen.
So develop a strategy according to the market situation at the moment and start earning now!